5 Ways to Break the Debt Cycle for Good
The truth is, it is necessary to control your money because if you don’t it will most certainly control you. No truer truth can be told than that of the debt cycle, or spiral as it should called. Not only does it spin out of control it almost always spins in a negative direction.
It takes hold of an individual’s income and assets and quickly turns a small problem into a much bigger one. As horrible as it sounds, there are ways to break the cycle, step away from the downward spiral and have a prosperous future.
Here are 5 great tips to help you break the debt cycle for good!
Know WHY you want to do it
Finding the why and making it powerful is a great exercise because you can always remind yourself of it when you are about to spend money on something you don’t need. Whilst everyone will likely have a different why, the power of tapping into it is undeniable when it comes to breaking an old habit and making a new one. Make sure you write your ‘why’ down and put it in a place where you will be reminded of it.
Want it or need it?
It is really okay to like nice things and think about how your life will be better with them, as long as you carefully consider want versus need. If it is something that will end up amongst a pile of other things, broken, outdated, a fad or something that will lose its shine after one use, then remind yourself of your ‘why’ and step away (or close the browser!).
Have a look around in your space and take note of the things you may have spent money on but no longer use. Use these of a reminder of things you once wanted, but clearly did not need!
Know your means and live within them
We see a rise in the number of people who live beyond their means as a result of “comparisonitis.” Made even worse by social media, comparisonitis finds individuals comparing what they do or don’t have with others. Generally this results in overspending in an attempt to “keep up with the Joneses” (or whoever’s life looks the happiest and most appealing on Instagram!).
If you notice you are doing just this, then it’s time to have a really good think about what abundance means to you. Being surrounded by things will rarely make a person happy, while being surrounded by people, memories and moments will almost always do the trick!
Be a budgeter
We know that lots of people write budgets and have the best of intentions to follow them. Unfortunately many budgets fail, especially when they are not clearly linked to the individuals “why” and looked at regularly. Ensure your budget isn’t filed away on the computer or in a notebook somewhere where you don’t see it, be reminded of it, and make your very best effort to become a “budgeter”.
Later never comes
We meet many people who have put their heads in the sand about their debt and continually told themselves “I will pay it off later.” Often this “later” is after a big holiday, buying an expensive car or having a shopping spree on the credit card.
All this does is delay the inevitable and mean that down the track the debt cycle is going to be even harder to break. Don’t wait for later to start chipping away at your debt, we all know, later never comes, especially when it’s something we have put in the too hard basket for a long time already.
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